6 Employee Payroll Setup tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to employee payroll setup work, not a general example.
Case Study 1 · Backlog brought current
Collections Halted And $22,000 Cut From A 5-Year Backlog — Home-Care Agency, Edmonton
Client: A home-care agency · Where: Edmonton, Alberta · Engagement: 7 weeks, fixed fee
Balance reduced by$22,000
Backlog cleared5 years
CollectionsHalted
The situation
By the time a home-care agency in Edmonton, Alberta called, 5 years were outstanding and the CRA had assessed on estimates. Underneath it sat T4s that did not agree to the payroll register or the general ledger.
What we did
We reconstructed the records year by year and reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $22,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Planning that cut the bill
$60,000 Cut From The Annual Tax Bill — 30-Employee Manufacturer, Moncton
Client: A 30-employee manufacturer · Where: Moncton, New Brunswick · Engagement: 5 weeks, fixed fee
First-year saving$60,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A 30-employee manufacturer in Moncton, New Brunswick was compliant but paying more than it needed to. The prior year had been filed correctly and still left long-term contractors who met every test for employment on the table.
What we did
We modelled the current position against the alternatives before changing anything, then moved the account to the correct remitter frequency, caught up the arrears, and filed a taxpayer relief request that cancelled the bulk of the penalty.
The result
The change saved $60,000 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Client: A dental practice · Where: Saskatoon, Saskatchewan · Engagement: 4 weeks, fixed fee
Annual saving$73,000
ReorganisationTax-neutral
StructureMatches operations
The situation
A dental practice in Saskatoon, Saskatchewan was carrying a director facing a personal assessment for unremitted source deductions, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $73,000, and the reorganisation itself was tax-neutral.
Case Study 4 · Scaling without breaking
Growth Handled Without A Missed Filing, $90,000 Freed — Security Services Contractor, Calgary
Client: A security services contractor · Where: Calgary, Alberta · Engagement: 7 weeks, fixed fee
Cash freed$90,000
Compliance failuresNone
ReportingMonthly
The situation
A security services contractor in Calgary, Alberta was opening in a second province — different filing obligations, a different payroll regime, and company vehicles used personally with no logbook and no taxable benefit reported already in the file.
What we did
We reviewed each contractor against the CRA’s control and integration tests, converted those who met the employment tests, and priced the transition before it was forced by a ruling and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
Growth was absorbed without a compliance failure. $90,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 5 · Objection and relief
$65,000 Of Penalties And Interest Cancelled On Relief — Retail Chain Across Two, Red Deer
Client: A retail chain across two provinces · Where: Red Deer, Alberta · Engagement: 11 weeks, fixed fee
Penalties and interest cancelled$65,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $65,000 landed at a retail chain across two provinces in Red Deer, Alberta following a desk review. The auditor had not seen the records behind remittances still going out monthly after the business had moved to the accelerated threshold.
What we did
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s, then set out the legislative basis for the position alongside the documents supporting it.
The result
$65,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 6 · CRA review defended
Audit Defence Closed In 7 Weeks, $42,000 Cleared — Construction Firm with Union, Hamilton
Client: A construction firm with union and non-union crews · Where: Hamilton, Ontario · Engagement: 7 weeks, fixed fee
Proposed tax cleared$42,000
Review duration7 weeks
OutcomeNo change
The situation
A construction firm with union and non-union crews in Hamilton, Ontario was selected for review after T4s that did not agree to the payroll register or the general ledger showed up in the CRA's automated matching. The proposed adjustment on employee payroll setup came to $42,000.
What we did
We moved the account to the correct remitter frequency, caught up the arrears, and filed a taxpayer relief request that cancelled the bulk of the penalty. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $42,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
